By Tom Westbrook and Scott Murdoch
SINGAPORE/SYDNEY (Reuters) – Adani dollar bond prices fell to a near-year low on Monday as investors reduced their exposure to the Indian conglomerate following allegations of bribery and fraud by U.S. authorities.
Last week, the group’s billionaire chairman Gautam Adani and seven others were charged with agreeing to pay about $265 million in bribes to Indian government officials.
The allegations related to alleged payments for obtaining contracts that could bring profits of $2 billion over 20 years, as well as for the development of India’s largest solar energy project.
The allegations also included making misleading statements to the public despite having knowledge of the 2023 US investigation.
Adani Group said the accusations, as well as those made by the U.S. Securities and Exchange Commission in a parallel civil case, were without merit and that it would pursue “all possible remedies.” In Asian trade on Monday, some of the most liquid debt issued by Adani Ports and the Special Economic Zone fell between 1 cent and 2 cents, with similar sales of Adani Transmission debt. Port bonds maturing in 2027 fell 1.6 cents to 88.98 cents on the dollar, losing almost 7 cents on face value since U.S. prosecutors charged billionaire CEO Gautam Adani last week. Longer-dated Ports bonds fell on Monday, losing 8 to 10 cents of face value on the news. Adani Transmission debt maturing in May 2036 fell 1.8 cents on Monday, a loss of more than 7 cents from Wednesday.
Adani group’s top 10 listed companies Adani company (NS:) lost $27.9 billion in market value over two sessions last week following US accusations.
